The Fairmont Hamilton Princess hotel has been sold to an American private real estate investment company.

Bermuda's oldest, and one of its biggest hotels, has been acquired by Seattle-based Goodman Hospitality Investments, which has already invested $20 million in the hotel.

But Fairmont Hotels & Resorts will continue to manage the property and there will be no changes to the management, staff or operation of the hotel.

The hotel, which dates back to 1885 and has been run by Fairmont Hotels & Resorts for the past 10 years, was only bought as part of a $3.9 billion deal that created a global luxury lodgings empire involving one of the world's richest men Saudi Prince Alwaleed bin Talal Al-Saud at the start of last year.

Reports in The Times newspaper in London in July 2006 said the Fairmont Raffles Hotels International was looking to sell a selection of hotel properties including the Fairmont Hamilton Princess and its sister hotel the Fairmont Southampton to a "passive investor" to pay off some of the debt incurred to secure that deal.

General manager Jon Crellin said he was not concerned that the Fairmont Hamilton Princess had changed hands from a wealthy Saudi Prince to a relatively unknown real estate investment firm.

"From my understanding the Goodman Hospitality Group is a $5bn real estate firm and they have plenty of capital available," he said.

However, he denied that the development of new hotels for business travellers on the Island such as the Carlton Ritz, planned for Par-La-Ville Road, had an impact on the Prince's decision to sell up.

"All the 14 or 15 hotels around the group are being sold, so there are no local market issues involved," he said.

Mr. Crellin explained that the deal first came about as a result of Goodman Hospitality Investments's interest in getting into the hotel trade and Fairmont Hotels & Resorts, part of Fairmont Raffles Hotels International, wanting to sell its hotels and go into the management side of the business, and Goodman came across to Bermuda to discuss it last autumn.

"They were looking at diversifying their portfolio and getting into the hotel business," he said.

"I think their initial visit goes back to late last fall and these deals generally take six to seven months and this was a little bit more complicated because they were trying to acquire two other hotels in Mexico - The Fairmont Acapulco Princess and The Fairmont Pierre Marques at the same time."

He was unable to reveal the cost of the deal due to the details not yet being published, but added that Goodman Hospitality Investments had immediately pumped $20m worth of investment into the redevelopment of the hotel.

"A lot of great stuff is going to happen really quickly and then I think they are going to come in to do these things and to get to know the hotel," he said.

"They are a long-term owner and they are going to be here for many years and they are going to want to know the community and us and where they need to spend additional dollars down the road.

"What this deal with Goodman is going to mean is a more significant infusion of investment up front and the sooner they spend their money the better and it is quite exciting for us."

The project will comprise the renovation of a guestroom in the Bay Wing and upgrades to guestrooms in the Gazebo, Pool and Fairmont Gold Wings of the hotel, following a recent $3.5m upgrade of the 45 rooms in the main building.

Additional plans include refurbishing the hotel's public spaces such as the lobby, fitness centre, spa, pool and restaurants.

The project will start immediately working with a local architect and contractor and renowned American designer Jinnie Kim Design on the renovations and the majority of the work will be carried out during the winter months to ensure the minimum disruption to guests.

It is expected to last 18 to 24 months and comes on the back of a $30m investment in the property by Fairmont Hotels and Resorts.

Further down the line, Goodman Hospitality Investments plans to get into retail development and meeting rooms as well as carrying out improvements to the staff facilities such as the cafeteria and staff room.

"We are excited to be working with Goodman Hospitality Investments and are pleased about their plans for the property," said Mr. Crellin. "The Fairmont Hamilton princess is a true icon of the island and with the new capital investment, we look forward to continuing our historic tradition for many years to come.

"We expect this to be a seamless transition for guests and staff alike."

"We are delighted to partner with Fairmont Hotels & Resorts on the acquisition of the Fairmont Hamilton Princess," said Laurent Poole, president and CEO of Goodman Hospitality Investments. "We are committed to preserving the historic charm of this island landmark while making enhancements to the property, beginning with a $20m renovation project.

"Bermuda is experiencing strong growth in tourism and we look forward to becoming part of the island community."

The Fairmont Hamilton Princess will continue to work closely with the Fairmont Southampton, but Mr. Crellin revealed that The Fairmont Southampton might be ripe for a takeover if the price was right.

He said: "I am sure that if the right buyer came along that is something that would be of interest to Fairmont."

Goodman Hospitality Investments is part of multi-sector private real estate company the Goodman Investment Group, which has a portfolio worth approximately $5bn including hotels and resorts, multi-family, office, retail, real estate development and property management.

On parent company Goodman Real Estate's website it advertises apartments, condomodiums, shopping centres, malls and golf courses within its portfolio and also properties for sale ranging from $7.3m to $23m.

Meanwhile, the company is currently acquiring hospitality real estate properties across North America, Mexico and the Caribbean.